Friday, July 13

Telling Whole Truths: John Mackey

According to the Core Values of Whole Foods Market, there is only one way to satisfy the needs of stakeholders. And that is to satisfy customers first.

Oh, make that two ways. According to The Associated Press (AP), John Mackey, CEO of Whole Foods Market Inc. (Whole Foods), found that posting under the anonymous name “rahodeb” was a pretty good way to satisfy the needs of stakeholders as well.

According to the story, Whole Foods announced it would buy Wild Oats for about $565 million, or $18.50 per share. But unfortunately, this comes after “rahodeb” posted the stock was overpriced; predicted the company would fall into bankruptcy; claimed it would be sold after its stock fell below $5 per share; declared Wild Oats' management "clearly doesn't know what it is doing;" and that the company "has no value and no future."

Obviously, “rahodeb” must have miswrote because Wild Oats does have value: $18.50 a share, which is sharply steeper the $5 per share that “rahodeb,” er, Mackey, um, "rahodeb" had hoped for as the masked Wild Oats stock vandal.

In fact, Wild Oats is so valued by Mackey, he has taken to misappropriating his company's public relations and social media communication to flame the Federal Trade Commission (FTC). Apparently, he is not happy they made his anonymous comments public in an attempt to block the merger nor does he accept that the FTC is trying to prevent the elimination of another competitor.

"As previously announced, we set an intention as a company to be as transparent as possible throughout this legal process, and this blog entry is my first detailed effort at transparency," said Mackey in a news release that neglects to reveal how posting anonymous comments on Internet financial forums for seven years might be transparent.

“I provide explanations of how I think the FTC, to date, has neglected to do its homework appropriately, especially given the statements made regarding prices, quality, and service levels in its complaint. I also provide a glimpse into the bullying tactics used against Whole Foods Market by this taxpayer-funded agency,” Mackey continues on his blog. “As stated in our initial press release about Whole Foods Market's challenge to the FTC's complaint, we set an intention as a company to be as transparent as possible throughout this process. This is my first detailed effort at transparency.”

Hmmm ... I suspect if there is any "whole truth" that could potentially win a fruit basket then “this is my first effort at transparency” must be it. Unfortunately, had Mackey done his homework, the best time to be transparent is before one damages personal credibility. So, what this all means is the happiness factor of Whole Foods (where I shop sometimes) is about to be spoiled.

How do I know? Well, some of the writing is already on the blog. Mackey, just days before this seven-year ethical breach came to light, published the graphic above for one of his more colorful, but long-winded posts, Conscious Capitalism: Creating a New Paradigm for Business. He says the image represents “a common view of the good, altruistic non-profit organizations versus the evil, selfish, greedy corporations.”

Overall, I don’t subscribe that the notion that this is really the "common view." It seems more likely to me that each company is charged with its own reputation management. And, with this responsibility, each is free to nurture positive public opinion in any it feels fit, starting with the behavior of its CEO.

But then again, if the "common view" is that corporations are “evil, selfish, and greedy,” it seems to me that any CEO who would attempt to drive down the stock prices of a competitor, under the veil of anonymity, certainly isn't helping this perception go away.

In sum, Mackey wants us to accept that there are truths, half-truths, and now “whole truths.” And while that might sound all fun and amusing (enough to start a living case study), the SEC isn’t laughing.

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Thursday, July 12

Calculating Identity: Career Distinction


After visiting Career Distinction and running its Online Identity Calculator on Tom Cruise yesterday (check the comments on the post), we started to wonder what would happen if we plugged in more people, ranging from notable bloggers to CEO bloggers to CEOs with no direct social media presence.

The mix is pretty eclectic, but it provides some interesting results. Keep in mind that our formula is less than scientific: we used the calculator (beta) to establish whether these individuals have an online identity that matches up with what seems to be their desired personal brand. Since the calculator only offers generalized definitions, we summed up the first three pages of a Google search.

Seth Godin — Digitally Distinct, 10
Desired: A bestselling author, entrepreneur, and agent of change.
Online: A leading marketing author and popular business blogger.

We picked Godin mostly because we had a hunch he would set the high water mark and, no surprise, he did. While there seems to be some slight variation between his desired and online brand, it’s only because the Godin brand overshadows the company he founded, Squiddo. In sum, his brand trends toward top online marketing expert/author (rather than entrepreneur and agent of change) and there is nothing wrong with that.

Johnathan Swartz — Digitally Distinct, 10
Desired: An approachable, likeable, creative, and unconventional CEO.
Actual: An approachable, likeable, creative, and unconventional CEO.

Swartz is the top CEO blogger for a reason. There is virtually no distinction between his online identity and his desired brand — he always presents compelling non-techno babble information to help businesses understand that technological advancements mean market opportunities as opposed to business threats. He does a near perfect job setting the cultural tone of Sun Microsystems and his views mirror what we’ve said for two years.

Jeffrey Immelt — Digitally Distinct, 9
Desired: A hardworking strategist who helped turn General Electric around.
Actual: A relentless workaholic whose biggest hope is everyone else can keep up.

Given Immelt devotes 12 weeks to foreign travel as one of our nation’s leading advocates for globalization, we’re not surprised he doesn’t have time to establish a direct social media presence. Still, as a Fortune 500 company CEO (top 10), others present who he is fairly well, with one small caveat — as much as he is admired, skeptics water down his ideas (despite results), leading us to believe he could score a 10 with a direct presence on the Internet.

Alan Meckler — Digitally Distinct, 9
Desired: A serious business executive and aggressive online CEO.
Actual: A straightforward executive who calls it like he sees it.

As one of the top 10 ten CEO bloggers, we’re not to surprised to see Meckler also scores near the top. There are some identity discrepancies, primarily because his writing and interview style come across as a tough-as-nails CEO when he’s much more approachable than that. Also, his view of Jupiterimages is obviously a bit biased when compared to his view of competitors, but we wouldn’t expect otherwise.

Scott Baradell — Digitally Distinct, 9
Desired: Accomplished brand strategist with corporate communications and journalism experience.
Actual: Journalist turned public relations strategist, which might explain why he never takes the industry too seriously.

With Baradell’s emphasis on public relations, media analysis, and blog entertainment, his online identity tends to shift away from brand strategist. But where his online personality works is that he is unquestionably adept at keeping things interesting. For evidence: check Media Orchard’s R Rating and his anagram post plug of Occam’s RazR among others.

Geoff Livingston — Digitally Distinct, 9
• Desired: A leading marketing expert and top-ranked marketing blogger/author.
• Actual: A seasoned marketing pro, social media analyst, and blogging guru.

For the most part, Livingston has achieved his desired online identity, especially since he has already been recognized as an area marketing blog guru by The Washington Post. Without question, he has some great posts that often cross over into legitimate trade journalism. With a book set for release and several post serials worth reading, he’s coming close to the tipping point. If there is one area to improve, it’s remembering that too much focus on others won’t brand you as a leader.

The Recruiting Animal — Digitally Distinct. 8 (7)
• Desired: The most outrageous and entertaining recruiting blogger and online radio host in history.
• Actual: The most outrageous and entertaining recruiting blogger and online radio host in history.

There is little doubt that The Recruiting Animal has achieved his online identity. He is a classic example of being positively infamous, with his stage name often appearing where you least expect it (even in places his peers might have missed). What’s equally interesting to me is that if we plug in The Recruiting Animal’s real name, his score drops to Digitally Dabbling, but all of the information about him remains on target (just slightly more serious).

Les Moonves — Digitally Disastrous, 8
Desired: A seasoned old school programmer who became CEO of a leading mass media company.
Actual: A CEO with a dated programming vision who calls the shots with little explanation.

Given our coverage of the Jericho cancellation protest (and reinstatement), we noticed that Moonves tends to leave people completely confused. On one hand, he wants CBS to lead the digital charge, but then doesn’t give new media much credit. He dumped Imus and dumbed down CBS News despite what ratings say, yet argued that the original cancellation of Jericho was based only on ratings. Given he has no direct social media presence, his brand is shaped almost entirely by mixed messages that paint him up as a CEO who likes to say “because I said so.”

David Neeleman — Digitally Disastrous, 8
Desired: A relentless innovator who challenged the airline industry to do better.
Actual: An ousted CEO trying to prove his relevance after a company crisis.

I read Neeleman’s blog because I admire what he has accomplished. Some people don’t get this in our coverage of the JetBlue crisis. They won’t get it here either as we’ve noticed a dramatic personal brand shift since his departure as CEO of JetBlue. He insists he is comfortable with the change despite several interviews that suggest otherwise. It doesn’t help that "Montgomery Burns" has taken over his flight log. It’s supposed to be funny, but only it reinforces questionable choices in the face of crisis.

Jason Goldberg — Digitally Disastrous, 7
• Desired: A successful entrepreneur who is leading innovator of the online recruiting community.
• Actual: A young, brash executive who gets caught up in online controversies and spins like there is no tomorrow.

There’s a boatload of information on the Web about Goldberg. Unfortunately, most of it doesn’t seem to have any relevance to what he wants to express about himself or his company. Most of it is about blog controversies, blatant spin, and a sometimes questionable management style. Other times, however, Goldberg even departs from this identity too, which makes people wonder how seriously they should take him. The odd attack-feint retreat-attack-retreat tactic doesn’t help.

Amanda Chapel — Digitally Disastrous, 7
• Desired: A mysterious and provocative foil for the online public relations community.
• Actual: A collective of anonymous writers who believe all publicity is good publicity.

There is a lot of information about the collective Chapel on the Web, but more and more of it has little relevance to what they want to express about themselves. As time goes on, it will be nearly impossible to remove all the irrelevant information. Some people have asked about my interest in Chapel, since they come up on my blog every now and again. Truth be told, I’m more interested in why Steve Rubel, Mark Ragan, and even Shel Holtz continue to feed the Chapel credibility. Is the public relations industry that boring or afraid to debate that it needs an anonymous ghost to do it for them?

Add it up and all of this seems to reinforce the most basic premise of my Fragile Brand Theory. You see, in almost every case listed above, without exception, the closer their personal and online brands are to the reality of who they are, the greater their measure of success in maintaining that brand. It also demonstrates, in a couple of instances, how one handles crisis or controversy can also enhance or erode brand credibility almost overnight.

In closing, just to be fair, we ran my identity too. While there is some discrepancy depending on how you type in my name, I came out with a Digitally Distinct 8 and Copywrite, Ink. with a Digitally Distinct 9. This stands to reason: establishing an online identity for the company ahead of me is by design.

Wednesday, July 11

Branding Public Figures: Tom Cruise


I’ve been working on a mathematically provable brand theory for the last few months and Nicole Sperling’s article on Tom Cruise that appears in the July 13 edition of Entertainment Weekly provided a pretty good public figure example of its most basic (but not complete) premise.

She points out that Cruise’s brand used to be all about his boyish charm turned “rugged good looks, flashy smile, and three Oscar nominations.” But then something happened, starting just prior to the release of Steven Spielberg’s War Of The Worlds (photo above).

Cruise’s increasingly visible dedication to the controversial beliefs that accompany Scientology has produced brand instability and disastrous results. Most recently, on June 25, the German Ministry of Defense announced that “it did not want him to film United Artists’ upcoming WWII movie Valkyrie at the country’s Bendlerblock war memorial” because, according to ministry spokesman Harald Kammerbauer, Tom Cruise is affiliated with a cult.

The ministry has since backtracked, now saying their decision has “nothing to do” with Cruise being a Scientologist. Likewise, Cruise has made the case that he is always an actor first and foremost. Hmmm… neither statement seems very credible and there is a very simple explanation that fits in within the aforementioned theory, which we might call the “Fragile Brand Theory.”

The Fragile Brand Theory accepts the definition that a brand is the net sum of all positive and negative impressions of the subject, Cruise in this case, and then breaks it all down into something that resembles an atom.

Imagine Cruise (the person, not the brand) is like a nucleus that represents the reality of Cruise. It doesn’t really matter what this reality is because people will generally accept realities regardless of what they are, which is why very, very different public figures usually succeed (whether you like them or not): Rush Limbaugh, Paris Hilton, John Edwards, John McCain, Al Gore, etc. Really, it doesn’t matter who any of these people really are because while the nucleus is related to and can be impacted by a brand, it is not the brand.

Unlike the nucleus, brands are reliant on the collective public’s perception about people, products, and companies. As mentioned, they are the net sum of positive and negative impressions. Using the atom illustration, they might look like layers of electrons that circle the nucleus, with the strongest, most authentic electrons being closest to the nucleus, and those that are “made up” or “stretched” being the furthest from it. When too many electrons are too far from the nucleus, the more likely a brand will become unstable, collapse, or be ripped apart.

In a case study of Cruise, the 1995 off-screen Cruise brand came close to mirroring the image of the much-loved character Jerry Maguire (and most characters Cruise portrayed before that). He was a somewhat private but daring actor who, despite being overconfident at times (the classic pride comes before a fall syndrome so many of his characters endure), always managed to better himself and triumph in the face of insurmountable odds.

That is a very different brand than the post-2005 Cruise brand we see today. Now, most of his impressions seem to suggest an arrogant and impulsive actor who frequently uses his fame to argue controversial topics if not create controversy while promoting beliefs grounded in Scientology. Actor first? We think not.

Regardless of how you feel about Cruise, Scientology, his relationship with Katie Holmes (including the Oprah brouhaha), or his war against certain prescription medication (which was at least half right as supported to the extreme by John Travolta), the Fragile Brand Theory suggests whoever the real Cruise is (1995 or 2005) doesn’t matter. What matters is that current public opinion is a reaction to the realization that the 1995 brand they loved is apparently very different from the reality that seems to be.

Generally, if the majority of all electrons remain close to the nucleus, they are more likely to remain in place, creating an extremely strong brand that can withstand anything. But when the majority of all electrons are revealed to be too far away from the nucleus (or in contrast to the existing brand), it becomes unstable.

In other words, if Cruise always acted like he has over the last two years, recent events would hardly be considered controversial let alone impact his career. But, since he has not always acted like this (at least that is the perception), he is suffering from brand instability.

Personally, I don’t really know whether the old Cruise or new Cruise is the real Cruise, but what I do know is that the Fragile Brand Theory demonstrates why a public figure like Britney Spears will always find public sympathy after countless train wrecks and public figures like Mel Gibson will always receive public scorn over a single drunken outburst. En masse, the public does not like it when public figures do not meet brand expectations. (Eg. the Paris Hilton brand can go to jail, but she’s not allowed to cry over it.)

Or perhaps this provides a better example: Rosie O’Donnell can run amok at the mouth because we expect it; Oprah, on the other hand, has to be a bit more cautious as she presents herself to be a grounded and trusted advisor.

In sum, one of the most basic concepts within the Fragile Brand Theory suggests it is more important to stick with your brand choice — whether you choose a halo or horns — than the choice you make.

Of course, you also might want to keep in mind that if your brand is more made up than real, sooner or later, it will collapse under the sheer weight of contrary actions or be pulled apart by unanswered accusations made by more credible sources. It also assumes you or your consultants know how to brand from the inside out; sadly, many say that they can, but most cannot.

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Tuesday, July 10

Communicating For Success: Social Media

Over the past few weeks, I've infused a few posts on how understanding traditional human capital and internal communication might cross over into social networks. For the most part, it included theory without a proven case study.

When I wrote the article, I turned to Southwest Gas Corporation (Southwest Gas) to provide a case study because I knew it was the fastest-growing natural gas company in the United States and consistently benefited from an exceedingly strong internal brand. What struck me about the company then (as it does today) was that its employee-to-customer ratio had increased from 1:415 in 1994 to 1:537 in 2000, but the average employee had 11 years in with the company despite being largely based in a market where 2-3 years was the norm.

"We've continually asked our employees to do more with less," said Robyn Clayton, then manager of consumer and community affairs. "In return, we work hard to provide a satisfying culture and keep them informed. The result is a motivated, loyal workforce."

When Southwest Gas projected natural gas rates would rise the year before, it launched an internal communication plan months before the rate increase impacted the company. Because its leadership recognized that employees would be asked questions by family, friends, and customers in the field, early internal education proved vital to the success of the company (the model still used today).

"By developing a long-term plan that demonstrated we were forthcoming, employees and customers were mostly positive about the increase," explained Clayton. "It was challenging, but we succeeded in empowering our employees and eventually our customers to understand our rates reflect the market."

In other areas, Clayton said internal communication is consistent across departments and several vehicles are in place to keep employees informed. Each update is tied to a specific medium (print, video, etc.), depending on which best communicates the information. Tracking results is fundamental.

"Several months ago, we evaluated the need for an employee video," Clayton said then. "We found that the employees valued it, but wanted shorter programs. Today, we met those needs instead of cutting the program."

The company, which has maintained a successful volunteer program since 1985, also provides community service opportunities on company time. The investment has been returned tenfold: increased involvement, a stronger brand, and personal/professional development for interested employees.

"We have developed a culture that values service to our community," said Clayton. "It has given many their first experience and nurtured lifetime volunteers. Today, our employees take pride in the program and it attracts people with similar values."

It seems understanding human capital has paid off for the company: long-term employee recruitment, retention, succession, and culture building are as vibrant at the company today as it was when I interviewed Clayton then.

Applied to social media, similar (if not the same) results can be achieved by nurturing online cultures even more effectively than print, video, or other communication devices alone. It doesn't matter if the network is an added function of an Intranet or Internet.

Internally, social networks, assuming the communication is well crafted, can be employed to reinforce corporate culture, encourage isolated departments and remote locations to work better together, provide better access to top decision makers (such as a CEO), and educate employees about upcoming corporate changes in real time, which would help minimize any damage caused by misleading internal or external gossip (assuming the executive team doesn't start the rumor).

Externally or even independently of a company, the same techniques can be applied to an online community. While members of a social network are not employees, they do consist of a structure similar to any organization.

As such, they too have human capital. By increasing communication from key stakeholders and the most active members outward, social network stewards might be better able to manage anything and everything from complete network redesigns to the tone of the participants without enforcing rules or expectations that drive members away. As leaders, the most effective social network stewards set the tone and agenda through example much like the best run companies set the tone and agenda for employees.

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Monday, July 9

Measuring Success: Image Empowering

Updated weekly, it might take months before the Image Empowering blog by Stephanie Bivona ever makes the blogger B list, let alone the mythical A list. But does it really matter?

Not for Bivona. Her business strategy for Image Empowering drives her blog; her blog does not drive her business or its message. Her post today reflects this thinking — "The Law of Attraction" as popularized by The Secret suggests that our thoughts manifest what we have.

Although The Secret repackages "The Law of Attraction" and gives it a fresh look, the idea is not a new one. It has been around for a very, very long time with the concept interwoven into almost every pearl of wisdom ever written. In fact, it might even be scientifically provable within the context of quantum physics.

Applying “The Law of Attraction" is also pretty good at debunking the myth of how some people measure social media success, especially among blogs. You see, I know Bivona’s blog will achieve all of its objectives despite never chasing traffic or blog rankings for one simple reason.

As one of our new social media clients, Bivona knows that the success of her blog or any future social media project is that traffic or artificially created rankings are myths being pushed by those who benefit from them the most.

The only people who seem to forward such discussions like A-List Bloglebrity, which uses Technorati to determine your standing in the blog community, are those who already have some rank. (Bloglebrity is similar to the equally popular What’s Your Blog Worth or even Alexa traffic ranking for that matter.)

While these measures are fine for virtual water cooler conversations, it’s silly to think they mean much more than that. Case in point: when this blog broke the top 40,000 on Alexa for a few days, we noticed the average length of time our readership stayed on the blog was reduced from 4-5 minutes to a mere 60 seconds. So what did we really achieve? Not much more than what I just mentioned — it’s an interesting water cooler conversation and opportunity to compare the power of one post to a direct mail postcard.

So while we thought it was pretty nifty, we also know that generating traffic and inflating page rank is pretty easy to do. We know all the tricks used by others, ranging from slanted SEO writing (even if the sentence structure makes no sense) and echoing other blogs (by adding gratuitous links) to weighing in on controversial topics (especially if you take a minority view) and being painfully trollish (like calling people names in the comment sections). For our part, we don’t employ these tactics (though SEO writing seems to come natural) because like Bivona, we’re not after traffic for the sake of traffic nor blog rank for the sake of blog rank.

You see, Bivona is not chasing traffic or blog rank; she’s attracting clientele and creating a means to provide constant contact with her existing clients. Thus, her blog becomes a multi-faceted tool that she has employed as a means to that end. Sure, casual visitors might benefit as her weekly posts shed some light on the importance of empowering your personal image.

Yet, her decision to enter social media was not to become an “A-list blogger,” which would require a different strategy all together. Instead, her blog provides an efficient and effective means to brand her full-service image consulting firm, which is her second business (she also owns a successful practice that buys and sells other companies). We’re even retained to play a part in its development; taking care of some details so she can focus on her clients.

Some of this fits in with this blog too. While our strategy is a bit different than Image Empowering, it’s no less dismissive of traffic or blog rank for the sake of traffic and blog rank. We believe, like any successful business does, that it is best to measure results that match your objectives, whether those outcomes are profitability, market share, niche dominance, or any other measure. In other words, it might be tempting to jump on the traffic and blog rank train, but doing so might produce the opposite of what you desire.

But isn’t that the way it is with everything? When you begin to adopt other people’s measures of success — blog ranking, traffic ranking, attractiveness, self-confidence, wealth, whatever — you run the risk eroding your business strategy (or self-confidence) because one size or measure of success does not fit all.

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Friday, July 6

Gambling Impressions: Disneyland

Disneyland. It's the happiest place on earth; and the place I'm writing from today.

But is it really the happiest place on earth? Or maybe, Disneyland is simply very, very good at messaging. After all, the welcome packages are sprinkled with pixie dust, and come with a commemorative coin.

If negative impressions are eight times more impactful than positive impressions, then it takes 80 positive impressions to erase a negative impression. So the question is: will I have enough positive park experiences to forget the two hours I waited in the hotel lobby at check-in because my room was not ready? Hmmm... probably. There are a lot of positive impressions to be found; some of which almost seem too good to be true — like being told the wait for breakfast will be up to an hour (it was three minutes).

Don't get me wrong. We're having a great time. And at the end of the day, we will have fond memories of the visit. That's the point. Very few places can gamble impressions like Disneyland and live to talk about it because so very few have 80 positive impressions around every corner or in their red back pocket. But Mickey, well, he's one smart mouse.

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Thursday, July 5

Protecting The Net: Network Neutrality

While we were all celebrating the Fourth of July yesterday, it was easy to forget that the Federal Trade Commission (FTC) has decided to abandon net neutrality and allow telecom companies to charge Web sites for access. It's a clear blow to the principle called "network neutrality" that preserves the free and open Internet.

The are only ten days left for bloggers and other people who use the net to make their case before the FCC. At Save The Internet, you can learn a lot about the importance of network neutrality. And you can add your story to the thousands who believe like I do, that the Internet belongs to the people. Congress might remember its role to protect its people wherever they may be, even online.

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Tuesday, July 3

Declaring Independence: United States

We've all heard the saying that a picture paints a thousand words. While often attributed to James Kirke Paulding's phrase "A look, which said as plainly as a thousand words," the aforementioned sometimes falls short as it does with this document, which is often considered the most masterfully written state paper of Western civilization (and under 1,000 words).

United States Declaration of Independence
Introduction & Preamble


When in the Course of human events, it becomes necessary for one people to dissolve the political bands, which have connected them with another, and to assume, among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed, by their Creator, with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness.

That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or abolish it, and to institute new Government, laying its foundation on such principles, and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.

Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object, evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.


The entire document can be found here. Happy Fourth of July!

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Demonstrating Leadership: Social Media

A few days ago, I mentioned a distinction between management and leadership of a social network. But the difference doesn't just apply to social media, it applies anywhere there is human capital.

Much like companies or organizations can apply the concept "human potential is an asset" internally (employees or members), they can apply the same thinking to social networks and online communities, which are made up of seemingly uncontrollable people. These people don't need management like Andrew Keen or the collective Amanda Chapel prescribe, both who fail to see "human potential as an asset" but rather as something that needs to be managed.

No, no, no. Any time the rules of management are applied to people, especially online, things go terribly wrong. Given tomorrow is Independence Day in the United States, it seems almost too fitting to point out our country was founded on the distinction between management and leadership. Oversimplified, but accurate. England had attempted to manage the colonies. John Adams, Benjamin Franklin, Thomas Jefferson, Robert R. Livingston, and Roger Sherman (among others), offered something else — leadership.

Whether it be the day-to-day operation of any business or social network, if executive and network owners recognize their members as human capital and connect with them, their ability to demonstrate leadership can accomplish great things.

In my study of human capital a few years ago, Geri Travis, senior vice president of Aon, a Fortune 500 consulting company, filled me in. She said that any time management can connect and communicate with employees, it develops credible leadership.

There is no question. Credible, involved leadership—through direct contact, communication, and team leaders (if that applies)—will build employee loyalty, which will translate into loyal customers. In determining the value of an employee, Travis said companies need to look beyond the cost of replacing an employee. Rather, the real hard costs are determined by looking at how many people a disconnected employee impacts every day.

"If employees feel discounted from the company on the job, you have to wonder how much business is at risk," she said. "When companies are in crisis, the consistency and frequency of communication can be just as important as the message. Suspicion and mystery can cause employee disconnect more than the crisis."

At the time, it was apparent that companies were finding ways to do more with less. Travis said that inclusion remained the best solution. Along the way, quantitative (eg. surveys) and qualitative (eg. focus groups) measurements can help create a dialogue between management and employees. (Today, social media can add to the dialogue with employees, and also consumers.)

"Companies spend millions on branding their product, but not their people," Travis said. "Yet, by defining the culture of the company, you would be in a better position to retain, recruit, and build loyalty with the kind of employees you want."

It is sound advice that can be applied anywhere. Much like the best companies, the best social networks are those that lead people. For example, Antony Berkman at BlogCatalog is challenging bloggers to do good by collectively writing about social awareness issues. Or, in a strange sort of odd, loud, and unpredictable way, The Recruiting Animal at RecruitingBloggers.com often skips over the body of an idea and goes for the engine. While their styles are vastly different (which is why I picked them), both are very adept at defining an online culture through leadership, not management.

In sum, if you want to build a successful online community, treat it like a successful business that is sensitive to human capital. Manage the site, widgets, links, etc., but not the people. All people need, much like the greater online community, is a little bit of leadership.

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Monday, July 2

Supersizing Wingnuts: Ronald McDonald


By now, you might have heard that McDonald's hired six "quality correspondent" mommy bloggers to report on the "world at large" about various McDonald's facilities. And, no surprise, for every friendly blogger found, an equal number of contrary bloggers will magically appear. (Or maybe it's the other way around, I forget.)

It's nothing new. Ever since marketing genius Ray Kroc made a deal with the McDonald brothers in 1954, America has had an odd love-hate relationship with Ronald, or least the product he sells.

On one hand, McDonald's is a great American rag-to-riches story of a businessman who created an American icon and believed in hard work, wholesome idealism, and selfless philanthropy. On the other hand, critics say Kroc cut the McDonald brothers out, exploited teenagers, despoiled the environment, hardened our arteries, and made us fat.

Even Greenpeace showed its split decision back in 2003: "We don't like a lot of what it [McDonald's] does and what it stands for but we have to take a deep breath here, and give them some credit where it is due. They've done something [environmentally friendly refrigeration] to help the planet!"

So what's the truth?

Given the recent New York City quick service regulation story, it points to a cultural trend being blamed on social media even though it didn't originate with social media. The trend is the polarization of, well, everything.

Polarization is a tendency to promote every issue as black and white; for or against; right and wrong. It considers consensus waffling at best and knuckling under at worst. It originated with traditional media, often dominates politics, and has been slowly and steadily creeping its way into almost anything we do.

The irony is most polarized issues, whether it is a big issue like global warming or a little issue like McDonald's, are a battle of wills. Usually, it means wingnuts (people with extreme views) have hijacked an issue in the hope that they can appeal to your emotions while you surrender your ability to reason.

To briefly understand wingnut influences, imagine a bell curve. They are the 10 percent on either side, with the rest of us being in the middle. If the wingnuts succeed in moving the middle just a little bit, they can change the direction of Congress. Sometimes, however, the bell curve gets pressed down in the middle (making it look like an M) or, in extreme cases, the middle is almost obliterated (making it look like a U).

Thus, in the case of McDonald's, anti-McDonald's wingnuts have gained some ground using social media as a mechanism. To help offset this, McDonald's did what bloggers have been asking every company to do: pay more attention to bloggers. So they invited a few seemingly pro-McDonald's mommies to take a peek inside and blog about it.

Well, anti-McDonald's wingnuts can't have this, so they want to discredit the mommy bloggers before they write a single word. Really, it's not all that different from the Nikon blogger outreach program (except these mommy bloggers, I am told, are really on the payroll) and as long as they disclose, who really cares?

The simple truth about McDonald's is that like any indulgence, excess is bad (and we didn't need some fool who ate only McDonald's for a month to prove it); the existence of McDonald's does not make you fat (only eating excess quantities of, well, anything will make you fat); and mommy bloggers are not unethical if they disclose, even if they say something silly like it's part of a balanced meal (assuming they buy that). Of course, if they write that, all it means is that they will diminish their own credibility.

You know, I'm starting to believe that America's appetite for convenience is not fueling McDonald's as much as it fueling polarization in America. It's convenient to have only two choices. It's convenient to discredit bloggers as having no influence until they write something we don't like. And, it's very, very convenient to blame other people for our own inability to control what we say, do, or eat.

Digg!

Sunday, July 1

Covering Hot Topics: Second Quarter 2007

Every quarter, we publish a recap of our five most popular communication-related posts, based on the frequency and the immediacy of hits after they were posted. While we base this on individual posts, some are related to larger case studies.

Jericho Fans Make Television History

When CBS executives cancelled Jericho over Nielsen ratings, fans of this post- nuclear terrorist attack/small town survival drama went nuts, literally. Using the Internet and social media as their point of organization, they launched the largest cancellation protest in history: sending 40,000 pounds of nuts (from just one store); rallied almost 120,000 petition signers; cancelled CBS related-cable subscriptions; boycotted network premieres; sold network stock; sent in countless letters, postcards, and e-mails; captured media attention in every major newspaper and tabloid; and flooded the network with phone calls. Within a few weeks, CBS reversed its decision in record time, heading off what was quickly becoming an exercise in crisis communication. Of all the posts, pointing out the error in CBS’ marketing of Jericho took top honors with over 10,000 hits.

Link: Jericho

Wal-Mart Strikes Back Against Julie Roehm

If networks are looking for a new made-for-television docudrama, the ongoing Julie Roehm story continues to turn heads (and maybe stomachs). Filled with twists, turns, sex, back room deals, character defamation, lawsuits, countersuits, media bias, allegories, and more spin than the planet Jupiter (which rotates once every 10 hours), this story demonstrates the pitfalls of second-tier executives becoming public figures and the companies that keep them. In the end, if she has any credibility left, Roehm’s personal brand will always be linked to the short-lived, um, alleged Wal-Mart funded affair with a subordinate, her master-class ability to spin herself into another lawsuit and, according to the Chicago Sun-Times, being more indestructible than a cockroach.

Links: Julie Roehm, Wal-Mart

Digital Media Will Change Everything

While some might say it was the very loose Jericho link, we like to think it is related to the increasing interest in the future of digital media, specifically how old media is becoming new media. When we gave some attention to how News Corporation and NBC Universal are speeding ahead with the addition of FUEL TV, Oxygen, SPEED, Sundance Channel, and TV Guide as content partners committed to bringing programming to Web video consumers, people wanted to know what it might mean. To us, it means that one day very soon, broadcast news and entertainment will be forever fused with the Internet, people will access it all via versatile technologies like the iPhone, independents will have the potential to break into the big leagues overnight, and businesses will fully develop what we sometimes call income marketing.

Links: Digital Media, NBC Universal, FOX

Paris Hilton Splits Public Interest

We don’t know about you, but Mika Brzezinski of MNSBC perfectly captured the public’s sentiment over Paris Hilton. In a YouTube clip, Brzezinski refuses to lead the news with Hilton, but then goes on and on about how she refuses to cover it, making her refusal to cover Hilton carry on probably three times longer than if she would have just read the script. Love her, hate her, love to hate her, or hate to love her, we’re not buying that you’re not interested because if we post about her, we always see spikes even though we generally only cover communication side items like blaming publicists, marketing humor, and overly long media statements from jail. Hmmm… maybe that’s why Hilton took second against Roehm in terms of most read public figure.

Link: Paris Hilton

The Office Parodies A Public Relations Nightmare

Although some follow-up stories to JetBlue and Jobster came close, NBC Universal's 2006 Emmy Award-winning show, The Office, proved fictional crisis communication is sometimes more fun than real life. For our part, we wrote up how The Office episode "Product Recall” mirrors how executives sometimes allow a crisis to run away from them by applying “tried and true” communication strategies. In the show, Michael Scott (Steve Carell), regional manager of Dunder-Mifflin, applies the practice of “always running to the crisis and never away from it” after a disgruntled employee at the paper mill put an obscene watermark on one of their most popular paper products. The operative word in this case is “always.” Crisis communication rules are only guidelines, silly.

Link: The Office

It’s very promising to see non-bad news posts starting to give bad news posts a run for their money. We're still hoping good news and educational posts might one day dominate the top five (admittedly doubtful). For example, when it comes to social media, we’d love to see more attention given to our underpinning concept that strategic communication is best suited to drive social media despite the fact that most companies seems to be trying to do it the other way around.

Anyway, while those were the top five posts (and related case studies) for the second quarter, several others came close (and almost all of them beat out last quarter). Runners up (no order): Fans of the The Black Donnellys lobby for HBO to save the canceled NBC show; PR bloggers made a non-issue into an issue over Nikon; JetBlue proved you really can overapologize in a crisis; Jason Goldberg of Jobster goes a whole week or so before behaving badly again; and our sum-up of Harris Interactive mobile advertising research despite my initial skepticism, mostly fueled by a not-so-great Webinar release.

So there you have it, except for one very, very important ingredient: thank you all for dropping by, adding comments, promoting several stories, and continuing to bring communication issues to our attention so we may offer up our sometimes serious, sometimes silly take on them. Whether you agree or disagree, all of it lends well to the discussion and I appreciate those who remember to target the topic and not each other in providing input.

Digg!

Saturday, June 30

Embracing Jericho Fans: CBS

Watching the CBS-produced fan video featuring BlogTalkRadio radio host Shaun O Mac, it's almost hard to imagine any ill words spoken during the show cancellation protest a few weeks ago. CBS seems to have embraced the fans.

"Seems" might be the operative word. Jericho fans are learning that passion-infused protests are much easier to orchestrate (if they catch fire) than an organized fan base for reruns. It's also one of the reasons I advocated for the creation of an association of sorts, back on June 10, to keep people engaged.

Some Jericho fans have hinted that the fan club is something they would love to do, but aren't sure how to do it (some insist anything beyond an individual "uncollective" is unwelcome). Others hope CBS will take the lead, but I'm unconvinced this will happen until the network officially goes beyond seven new episodes. Regardless, the longer it takes to create an engaging organization, the more difficult it will be to retain active participation and capture media interest, which has long tapered off (no surprise; there is no new "big" news).

As a somewhat related side note, I want to highlight that the three different fan bases I've covered, all have very different structures. Veronica Mars fans are interconnected groups of individuals that come together not unlike Tinker Toys, with hubs and spokes that branch out forever; fans of The Black Donnellys are generally centralized as a single body with a few offshoots; and Jericho fans operate like a donut, with various equal bodies but no clear center. Each structure has its advantages and disadvantages.

Specific to Jericho fans, however, is the need to add a centralized body in the center of their donut, which might provide CBS the direction it needs to endorse, if not support, some representative body. How can this be done?

Organize A Delegation. Last week, Jericho fans clearly demonstrated that unless they become sidetracked, they are people with principles (not just passion). Given this, it seems to make sense that a fan club might be created by having each group nominate an equal number of individuals (1-3) to represent their various forums and collectives. (These individuals may or many not serve on the board once the club is ratified. I recommend picking those who have consensus-building skills, not necessarily leadership skills, at this stage.)

Create A Name And By-Laws. Having written and revised several organizationd' bylaws, I know finding the right example is not difficult. Although unrelated, The Winnepeg Goldeyes have excellent bylaws that could serve as a starting point. Here are a few other points to consider:

• Keep the focus large and fill in details (like member dues) later.
• Draft bylaws within the delegation, outside input is not needed.
• Create an executive body that is elected by the populous.
• Allow the board to consist of representatives from each group.
• Keep it simple. Four traditional executive roles could be enough.

Upon completion (again, without some details in place), give each group an opportunity to ratify the document (so to speak). Send along a courtesy copy to CBS so they are aware of your intent, but don't be overly concerned with an endorsement at this stage.

Elect Interim Officers/Board. Officers could be elected by the entire populous (all groups) and other board members elected from their representative groups (I appreciate there is crossover; but you have to start somewhere ... ask people to vote in only one group). This interim body will be charged wih taking care of the details.

Consolidate Resources. Most fan clubs have to determine overhead and cost of operation at startup. Jericho fans will also, to some degree, but they seem to have more flexibility in being able to adopt/endorse existing projects that have already seen some success (merchandise, newsletters, blogs, etc.). This will help defray any initial costs and communicate ongoing progress.

Legal Requirements. One of the responsibilities for this central body will be to take care of the details: establishing membership dues (even token dues), sponsorship/donation opportunities, filing bylaws, opening an account, setting up an Amazon affiliate program to sell DVDs, etc. Keep CBS apprised of all activities; encouraging them to eventually endorse the group by demonstrating solidarity.

Create A Community. While the last thing Jericho fans seem to need is another forum, there is the possibility of creating a social network on a platform like Ning, linking to and/or adding RSS feeds to the various represented bodies. Promote the launch of the community, keeping in mind that the goal is not so much to create a new group as much as it would be to provide a neutral community to conduct business, etc. (Various groups/forums are free to pursue their own efforts as they currently do, with the only added task of enrolling members in the fan club.)

The benefits of a central organization for the promotion of the show, various represented group activities, and eventually its own endeavors, would provide a long-term strategy that will help ensure the success of Jericho. And, even in a worse case scenario, provide a mechanism to expand the Jericho Universe in the event CBS abandons the show.

However, the real benefits will be made apparent when the fans succeed. It could become a centralized body that works closely with CBS in developing fan-generated marketing and promotional items while drawing attention to each represented group's best practices.

At least, that's the way I see it from a conceptual standpoint (if you need more guidance or I'm not clear, just ask in the comments). But then again, I'm a big fan of the republic.

In closing, here's an update on last week's DVD tracking via Amazon for anyone interested (alpha order)*:

The Black Donnellys
(Reviews: 24; Sales Rank 1,576; Peak Rank: 356)

Jericho
(Reviews: 58; Sales Rank: TBA; Peak Rank: TBA)

Veronica Mars #3
(Reviews: 32; Sales Rank: 15; Peak Rank: 8)


*represents what we saw; not necessarily an official number. We'll be watching Entertainment Weekly once all three are released.

Digg!

Friday, June 29

Guessing Intentions: Burger King, McDonald's, Wendy's


As reported by the Associated Press, Burger King, McDonald's and Wendy's are all balking at New York City's new rule that will require them to post calories on menus. Taco Bell and KFC won't talk.

"They are afraid that when people see these eye-popping calorie numbers, they might switch to a smaller size," Michael Jacobson of the Center for Science in the Public Interest, a health advocacy group, told the AP. "They feel it is going to hurt sales."

Jacobson's answer likely comes from a question I usually advise our clients not to play along with. While the wording might be off, it's a good guess the AP reporter asked "Why do you think Burger King, McDonald's and Wendy's are afraid to post the calories?"

Speculation can be a dangerous game, even if you are an advocate of the new rule that covers some 2,000 New York City eateries. More likely, the only reason three chains are taking a harder stand is because the New York State Restaurant Association challenged the rule in court, the city said it won't fine anyone until October, and the "calorie counts" are required to be the same size as the price.

While this story appeared on SpinThicket as a PR Nightmare, I'm wondering if it isn't just good old-fashioned spin and not on the part of the quick service industry (that's the PC term for fast food. Ha!).

True, quick service is not the most nutritional choice for lunch (neither is what most of our children are served for school lunch). But also true is that, sometimes, elected officials overreach in creating regulations that are meant to "protect us from ourselves" because, frankly, it looks bad to serve a term in office without making something up. I think this might apply.

What New York City has going for it is perception: hamburgers are somehow evil. What it has going against it is reality: adults don't need to feel guilty about their choices.

Besides, most of this information is available anyway. As Denny Lynch, spokesman for Wendy's, told the AP, Wendy's has made this information available for 30 years. Indeed, it's been a unique selling point on more than one occasion.

Hmmm ... sometimes business has a tendency to set industry standards without an assist from government. So if Subway, KFC, and Wendy's haven't been able to cut into competitor sales on the selling point they have lower calorie choices by now, then I doubt very much city government regulations will either.

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Surviving Social Media: IABC/Las Vegas

A little more than two years ago, I posted my confession that it was my partner (not me) who said Web logs (blogs) were going to have a lasting impact on the communication industry in late 2003.

Fortunately for me, despite my skepticism, I approved what became a yearlong study on the patterns, perceptions, potential, and business application of blogs. The early work led me to speak at an International Association of Business Communicators/Las Vegas (IABC/Las Vegas) luncheon, were I concluded: no matter how you felt about it, social media was influencing the public and the media about products, services, policies, daily operations, and a company's bottom line.

Was I right about social media?

It resulted in the Singapore government paying out S$150 million to about 330,000 low-income workers five days before an election. It underpinned the biggest television show cancellation protest in history with Jericho fans shipping 40,000 pounds of nuts to CBS. It was behind the move by shareholders to oust JetBlue’s founder as president. It thrust the local Towbin Hummer flag controversy into the national spotlight. And, it is the reason behind Wynn Las Vegas becoming the first resort casino to have unionized dealers.

Amazing to me, despite the fact that social media has changed the communication landscape, most communicators (and even some bloggers) remain in denial. They say social media is a fad or not to be taken seriously. But the truth is (much like your message): if you don’t manage social media, social media will manage you.

On Friday, July 13, I've been asked back to speak at IABC/Las Vegas to present on a slightly different topic: what does it take to make social media work for you and not against you. While I'll touch on how to determine which tools — blogs, podcasts, digital media, and even PR Newswire releases — might work best for your company or clients, I'll also provide an inside look at some of the case studies we've covered and why this blog became the top ranked communication blog in Nevada.

Host: IABC/Las Vegas
Date: Friday, July 13
Time: 11:30 a.m. (networking)
Location: Las Vegas Country Club, 3000 Joe W. Brown Drive
Cost: $26 for IABC members and students, $30 for guests
RSVP: Visit www.iabclasvegas.com by July 11


While some readers know I have social media experience — contributing to RecruitingBloggers.com, participating on SpinThicket, assisting on a BlogCatalog project, working to partner with The Buzz Bin to develop something on myRagan, and launching three blogs for various clients — social media is only some of what we do (although some days, I wonder. Ha!)

So, in the hope of promoting this IABC/Las Vegas program to social media skeptics, I'm also an accredited business communicator who has worked on more than 1,000 accounts, written hundreds of magazine articles, contributed to five books, and scripted a documentary for PBS. I currently serve as an examiner for the IABC International Accreditation Board; governor-appointed state commissioner for the Nevada Commission for National & Community Service (AmeriCorps); honorary member of Les Clefs d’Or; and Educational Outreach instructor at the University of Nevada, Las Vegas.

Within the past three years, I've also served as an international research committee member for the IABC Research Foundation; director of public service for the Las Vegas Advertising Federation; director of public relations for the Business Community Investment Council; and in several other positions to assist nonprofit professional and community service projects. My work has earned numerous awards, including several Addys, EMAs, and Quills for writing, creative, and strategic direction. I've been honored as IABC/Las Vegas Communicator of the Year, WIC Agency/Production/Public Relations Principal of the Year, with the Las Vegas Chamber of Commerce Community Achievement Award, and others.

Prior to Copywrite, Ink., I was creative director at an advertising agency in Reno and worked in the corporate communication department of a major utility. I'm a proud graduate of the Reynolds School of Journalism at the University of Nevada, Reno.

I don't blog in pajamas or bathrobes (not that there is anything wrong with that), but some people might be surprised by the caliber of our clients (small and large) and, even more so, the results we've helped generate for people, products, companies, and even elected officials. So, if you're in Las Vegas on July 13 (and you've RSVPd by July 11), drop by for a few hours. We're even going to give away some quirky Jericho-inspired Copywrite, Ink. "blog promo" T-shirts.

Digg!

Thursday, June 28

Controlling Community: John Sumser

John Sumser has taken on a mission impossible because there seems to be a desire to transform Recruiting.com, which is currently defined as blog community portal, into a niche social network that will be managed like an online magazine with Sumser as editor.

It cannot be done.

Sumser is not alone in making the mistake of combining what are opposing objectives. Many companies are struggling with the same self-created issue, which is what often gives rise to community members screaming unfair criticism, blatant censorship, and/or totalitarian fascist rule. Eventually, it leads to protest, exodus, or even negative public outcry beyond the niche it serves.

You can see it all over the net. It ranges from alleged censorship of The Black Donnellys fans at NBC online and Jericho fans during the cancellation protest at CBS online to the broadest brush strokes and ample examples being advocated by the Electronic Frontier Foundation. All of it, big and small, stems from the same problem: a lack of strategic oversight on the part of the site moderators that often leads to gross confusion over whether or not the First Amendment might apply on the part of the participants (mostly, it doesn't), which I'm inclined to write about another time.

Today, I'll stick to the misconception being applied by some companies: they think "if we build it (a framework for an online community of sorts, whether it be a blog, portal, forum, social network, or some combination), they will come." And, as soon as the "open" sign goes up, sometimes they do come — participants who quickly take up residence and build their community.

Did you catch that? I said "their community" because it's the most important part of the equation. Companies that create online gathering places only own the framework; it's the participants who own the community. Because without them, there is no community.

And that brings us back to Recruiting.com. Whereas Jason Davis (former management at Recruiting.com) moderated with a guiding hand, Sumser seems to use the rule of law. After all, as editor, Sumser claims it's his job to ensure the content is worthwhile by some subjective standards only he knows.

While I understand this thinking from someone who often considers social media and blogging as, more or less, immature and brutish (although, mysteriously and magically, not so in many, many places), it represents the direct opposition to developing an online community. You see, the model for editorial control, beyond the loosest guidelines, (eg. no pornography, etc.) is much better suited to running an online magazine or news source like, well, Electronic Recruiting News.

For a blog portal, like Recruitng.com, any sense of community can only be accomplished by applying the simplest of concepts: "it's easier to pull a chain than to push one." That means "editors" must abandon their propensity to manage and attempt to lead.

Real leadership does not work under the rule of law. It requires something else all together. So instead of "editing" and reserving the right to make even the best intended critiques, the moderator who hopes to build a community will see better results if they focus more on making people feel welcome, praising those who provide the best examples, and adding unique value for the residents.

No, it doesn't have to be this way. Recruiting.com could just as easily operate as an online content provider or magazine (in which case, it needs more exclusive content) and a blog portal, giving up on the idea that it is somehow a community (it's not). While this means it will rarely be considered home, the model can work just as well while affording the owners control, which they seem to want.

From a more general perspective, any time a company, organization, or group launches a product, service, or online "something" (or applies sweeping changes to such things), it's always best to develop a strategy first. And, if these things already exist, it's never a good idea to remove previous tactics without knowing what you need to replace them with. Ergo, if you blow little things all up without a plan, you might be surprised to find out some of those little things made the big thing work.

Ideally, developing a strategy can be largely accomplished by understanding the environment in which you hope to operate and your true competitors. Then, you offer added values to your product/service/offering or, at minimum, positive communication contrasts between yourself and your competitors.

Apple and AT&T's positioning of the iPhone is a pretty good example. Verizon's new message, which they think will keep customers from switching to an iPhone, is not.

The bottom line. You cannot be all things to all people, especially when you aren't all things.

Digg!

Wednesday, June 27

Behaving Badly: Jobster CEO

Jason Goldberg, CEO of Jobster, an online career network, has once again succeeded in doing what he seems to do best. Any time the sailing seems too smooth or the skies too blue, he veers his venture capital-funded ship and its shareholders’ money off course to find a storm of his own creation.

This time, apparently prompted by moderately reliable Alexa analytics, he sent former employee and shareholder Jason Davis a cease-and-desist letter to either close down Recruitingblogs.com (which I recently reviewed) or force broker a deal to, in Goldberg’s words, “work this out in a way that benefits everyone.”

According to Goldberg’s letter to Michael Arrington at TechCrunch, Davis is in violation of a non-complete clause that Davis signed as part of a contract to manage Recuiting.com for a year (after he sold the site to Jobster). After the one year contract was complete, Davis launched Recruitingblogs.com. Goldberg’s position and the message he thinks he is communicating is this:

“Our overarching intent at Jobster and with our Recruiting.com Website remains to foster online community in the recruiting industry — the more the better. At the same time, Jobster needs to ensure that our employees and contractors uphold their commitments.”

It seems to me and others that Goldberg is communicating something else …

• He has not learned that virtually no communication, especially bad communication, will remain private. Sooner or later, it will be made public.

• He is not above attempting to manipulate and intimidate people into giving Jobster and Recruitng.com some sort of leverage over others, Recruitingblogs.com in this case. It’s laughable at best, unethical at worst.

• He does not have faith in John Sumser’s management of Recruitng.com to retain and attract visitors. If he did have faith, there would be no reason for Jobster to threaten legal action to protect a Digg-styled blog portal against a very different offering, which I called an open niche social network on Ning. (Even Sumser, who I enjoy from time to time, doesn't seem to have much faith in his abilities either.)

• He is a rash, impulsive executive without empathy; it sometimes seems like he wants to come across as a hardhearted bully, but in reality, this action seems more like a spoiled child throwing a tantrum because he made a bad decision in not renewing Davis’ contract.

• He comes across, once again, as being disingenuous by saying that “We at Jobster are actually big fans of the Recruitingblogs.com Website … we’ve also offered/suggested that there is probably a good way for us to work together going forward.” A cease-and-desist letter is usually the last communication, not the first communication, in fostering positive business relations.

From a communication perspective, legality issues aside, even if Goldberg and the much-loved-by-the-recruiting-industry Davis can reach an amicable agreement as they both suggested they might, Goldberg has already lost. He has created a potential crisis in using the supposed weight of his company to censor a niche social network, that has yet to make any money, just because he feels threatened by even the most indirect competition and comment.

Goldberg’s best course of action, assuming he doesn’t want to become another “laugh piece” for The New York Times, is to admit that he overreacted and retract any hint of taking legal action. If he does not, the potential ramifications will likely be that Recruiting.com will continue its decline (caused by its own inability to remain relevant even though it could be), and Goldberg will solidify his personal brand as someone who is either not to be taken seriously or to be avoided at all cost. This would not bode well for Jobster, as mentioned on the Recruiting Animal Show.

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Tuesday, June 26

Falling Skies: Daily Mail

The sky is falling! The sky is falling! And the culprits bringing it down are anyone who happens to use the Internet, especially youth.

At least that is what A.N. Wilson with the Daily Mail would have us believe with this article, entitled "The internet is destroying the world as we know it."

It was brought to my attention yesterday, being cited as a discussion point by the collective Amanda Chapel, this time at myRagan.com.

"Your child is next door on the computer, destroying the world as we know it and wrecking two of the most fundamental values that underpin society..." leads Wilson.

Yep. Ten-year-olds are the new villains of modern society, responsible for destroying the record industry, the publishing industry, newspapers, and cinema; while amazingly enough, still finding time to become addicts of gambling, pornography, and insidious forms of self-deception.

Fortunately, my son is still two years shy of this now infamous age group when he will be formally indoctrinated into the new axis of evil that is the Internet. Or maybe, something much simpler will prevent him from taking the plunge. What's that? Parental guidance.

So at the risk of sounding like overly cautious parents, we created a hot list of sites that he can visit and put up parental blocks on those he cannot. (And never mind what I think about most shows on Cartoon Network, which he no longer watches.)

To be fair, Wilson starts by thinking through some questions about online privacy (though sadly, no one seems to care). But then, it turns toward good old fashioned doomsday op-eding. You know the kind; the same stuff that sold millions of Y2K books.

For example, Wilson warns us that the Internet is filling our children's heads with blatant propaganda by drawing a comparison between Wikipedia and Encyclopedia Britannica online, but never gets to the real reason Wikipedia is better read (online, at least).

It seems to me that the so-called seductive power of Wikipedia is not the reason it ranks higher than the Encyclopedia Britannica on the Web. It's much simpler than that: Wikipedia is free, void of excessive advertising, easier to navigate, and enjoys the benefit of major consumer marketing. (Despite this, I too caution people against considering Wikipedia the most reliable source on the planet.)

So where does this leave us? Are we to bar our children from all things Internet, starving their development to make independent judgements?

Hardly. Our responsibility lies in guiding our youth (our own children, specifically) who sometimes place too much faith in a single source of information (like television commercials with irresistible toys or Wilson's article for that matter). And, we can educate them so they know that history is being rewritten as we speak, every day, and has been for all of, well, history. Among other things.

Then again, maybe Wison and the collective Strumpette aren't really to blame for this point of view that puts our children at risk. Perhaps it is because they too, it seems, bought a questionable bill of goods. The argument they are forwarding is not original; it comes from author Andrew Keen, who claims to "have invented the model of integrating commerce, community, and content." He's also a F**ked Company Hall of Famer.

Ironically, Keen employs the same tool he chastizes for creating a "grand utopian movement" similar to "communist society" that "worships the creative amateur: the self-taught filmmaker, the dorm-room musician, the unpublished writer," preferring, I imagine, a fascist, snobbish world where an elite class of overmen might dictate who makes the cut into the professional talent pool.

Never mind that almost all of our greatest writers, artists, poets, and filmmakers once belonged to the ranks of this lowly amateur class. (No, Keen, not everybody starts as a child television star, not that there is anything wrong with that; some of us start by mowing lawns and drawing pictures of the neighbor's dog.)

So therein lies the rub. Just because something has a cover doesn't make it any more truthful, credible, or accurate than something you might find online (and vice versa). To find the truth, you have to dig deeper, look at multiple sources, ask the right questions and, if you are able, conduct your own research beyond giving in to citing other people (including polar opposites, which is the trend nowadays).

I think social media is as much the same today as it was when I likened it to the Force a few months ago. How one uses it will make all the difference. How we teach our children to use it will also make all the difference.

There are Sith, Jedi, and everybody in between. But the Internet is largely just a public space that can be used to further a business strategy, for individual or collective good, for entertainment, and, as some people know, to peddle "fear" and polarizing viewpoints as if the world were black and white.

Fortunately, the world is not black and white. The sky is not falling. And our children (though you might want to check up on them) are not ushering forth a world of unparalleled evil because of the Internet. On the contrary, they might just use the Internet to prevent it.

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Monday, June 25

Understanding Connections: Social Media

As part of my study of human capital a few years ago, I tapped insights from a fast growing company called Direct TV. At the time, Direct TV was simply known as a company to watch. Today, it is the largest provider of DTH digital television services and the second largest provider in the multi-channel program distribution industry in the United States.

What Direct TV understood then, and still does today, is that even "soft" employee programs foster better communication. While social media was barely a blip on the radar of communication, it doesn't take much to see how what was being done then could be reinforced with the tools we have today.

"Fifty to 75 percent of our employees at the corporate office attend every program," said Caroline Leach, ABC, then senior manager of employee communication for Direct TV (now vice president of communications for Direct TV). "Typically, we host them at noon or late in the day. Sometimes it's a recognition program or simply coffee and donuts with executives. They help maintain our family-oriented, entrepreneurial style."

While some companies will always remain skeptical of employee programs, Direct TV found they worked well in moderation. Specifically, they connect employees to management, exposing people to different departments they had no contact with, and generate new ideas. The programs were augmented by a well-defined, integrated employee program, strong benefits packages, and performance incentives.

"Measurement is key to understanding what your employees want," Leach said. "For example, we survey employees electronically after every company broadcast, which gives us an immediate response to how well the information was received. The surveys are anonymous, which empowers the employees to give us candid feedback."

From a broader perspective, the company's (then eight years old; now 13) strategy was simple. The executive team communicated the top one to four quarterly goals to each department while managers were charged with translating these goals into terms that individual employees can apply.

At the same time, employees were empowered to be part of the decision-making process. After the company implemented quarterly bonuses (based upon earlier satisfaction with annual bonuses), employees evaluated and eventually requested an annual bonus over four quarterly bonuses.

The reason in 2002: because Direct TV is an industry with seasonal growth, non-performing quarters (without bonuses) were found to be disheartening and counterproductive to the overall success of the company. The old adage "success produces success" stands.

"Employees also prefer to get most of their information direct from supervisors," said Leach. "We try to augment any communication with face-to-face communication. Our president's day breakfast with 8-10 employees, for example, has a powerful ripple effect throughout the company when the employees return to their departments and share highlights."

Flash forward to today and it is not difficult to imagine how internal social media might have been employed to augment such proven internal communication practices. In fact, it demonstrates something that we've offered up here on several occasions. If 8-10 employees can create a powerful ripple effect throughout a company after a single breakfast with decision makers, imagine what 800-1,000 readers might do after reading an authentic executive post where they can engage the executives by asking a few questions on an Intranet. Hmmm... virtual coffee and donuts with that many more in attendance.

In addition, through such online interaction, companies might be better equipped to solve a growing problem for many businesses (according to an article in the Harvard Business Review, which I'll be writing about later this week) and that is developing a talent factory to fill what seems to be an ever-shrinking pool of strategic thinkers.

Sure, I doubt social media will ever replace face-to-face communication as the most powerful tool in the communicator's arsenal, but it stands to reason that more companies will find unique internal communication methods that demonstrate social media will become the second most trusted source of information within a company (assuming the company does not over-propaganda it).

And, if it can work within a company to provide a bird's eye view to keep departments up to speed, then what is the difference between an internal social network or one consisting of loyal consumers? Virtually none at all.

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Sunday, June 24

Selling DVDs: NBC, CBS, and The CW


In Nov. 2003, after seven months of strong DVD sales, The Family Guy became the first canceled series to be revived based on DVD demand and syndication ratings. More than one million DVDs made it the top-selling TV show on DVD and fourth most bought television title ever (in 2003).

Often overlooked, strong DVD sales and impressive fan support campaigns also revived Firefly (Fox 2002) for a movie spin-off, “Serenity," in 2005. In 2006, fans then released a documentary called Done The Impossible. It features interviews with various cast members, making the words "Firefly and Browncoat symbolize a sense of community, family, and believing that the impossible can be accomplished."

Currently, there seems to be three standout TV series that were cancelled (with one already resurrected) that networks will be watching closely. Maybe one of these will be the next big DVD sales surprise.

The Black Donnellys. Due to be released Sept. 4, DVD sales seem to be the most important aspect of this fan effort if there is any hope of pulling off the impossible on any level.

Working for the fans. There seems to be a well-executed effort by Universal to deliver a 3-disc product that promises to do justice for Paul Haggis' smart, well-written crime drama. It may have been too powerful for prime time, but it might be perfect for DVD. They also have the benefit of a Sept. release and still active NBC page.

Working against the fans. TBD has a smaller fan base (but no less passionate) given the series did not have a full season. There are almost no Amazon reviews and online HDNet sydication did not help these fans as much as reruns on another network would have. (Amazon pre-order sales rank, pre-order: 2,441)

Veronica Mars. The third season is due to be released with a 6-DVD set on Oct. 23 (not available for preorder on Amazon). Although fans pulled together a campaign that sent Mars Bars (Snickers and marshmallows too) to The CW, creator Rob Thomas confirmed a dead end on June 12.

Working for the fans. They have two seasons under their belt, both with very strong sales. They've earned Thomas' appreciation as fans, and he promised to do something with the Veronica Mars character if not in comic books, then perhaps in a new series based on the character or even a film (if you believe some rumors).

Working against the fans. There is the simple fact that many of the stars (Kristen Bell, Chris Lowell, Enrico Colantoni, and Tina Majorino) have already moved on to new TV and movie projects. So even if a character revival rumor beyond comics became true, it's likely not to be Bell. (Amazon season one sales rank, 634; season two, 573)

Jericho. The DVD, recently bumped from Sept. to Oct. 2, is not yet available on Amazon. However, it has managed to earn 47 5-star reviews.

Working for the fans. Momentum is clearly on their side, given they already scored the largest show cancellaton protest in history, fastest network cancellation reversal, and the knowledge that CBS is already considering moving beyond seven shows. They also have a very large fan base that can turn on a dime (it took fans less than three hours after yesterday's post for them to become upbeat like they used to be). Jericho DVD sales will also be pre-supported by reruns starting July 6 and new episodes this fall.

Working against the fans. Not too much as long as they stay focused. CBS might do more to target new viewers as opposed to simply pleasing the fan base with Internet ads. And one wonders whether the availability of Jericho on iTunes, CBS Innertube, and now the new Amazon download feature will dampen DVD sales. But then again, some fans have pledged to buy five sets and send them to friends so who really knows. (Amazon sales rank, not yet available)

Of the three, Jericho seems to be the easy favorite to lead the pack, which could make all the difference in securing season three despite what numbers Nielsen offers up. While Veronica Mars seems likely to have comparable sales, The Black Donnellys may find DVD sales are their one real shot to be publicly counted.

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